SB III. Enrolling a Loan - California State Treasurer · 2019-08-21 · CalCAP Small Business Program Lender Manual III-1 III. Enrolling a Loan A. Overview Lenders must submit to

CalCAP Small Business Program Lender Manual III-1

III. Enrolling a Loan

A. Overview

Lenders must submit to CalCAP the following forms and documentation with each loan

enrollment request:

CalCAP

Provide to Borrower

Required

1. CalCAP Loan Enrollment Application

http://www.treasurer.ca.gov/cpcfa/calcap/sb/enrollment.pdf

2. Borrower Certification for Small Business Loan Enrollments

http://www.treasurer.ca.gov/cpcfa/calcap/sb/certification.pdf

3. Proof of Borrower and Lender Fees Deposit

4. NAICS Print-Out (most current year)

http://www.census.gov/eos/www/naics/

5. Borrower Privacy Notice

http://www.treasurer.ca.gov/cpcfa/calcap/forms/privacy.pdf

If Applicable

4. Appraisal or other reputable documentation of the property value – only for commercial real estate loans

5. Print-out of web page showing borrower is located in a Severely Affected Community (SAC), if applicable:

http://www.labormarketinfo.edd.ca.gov/Content.asp?pageid=1003

6. CalCAP “Borrower’s Agreement to Pay Lender’s Fee” form – only for applications for which the borrower is paying both the lender and borrower fees

http://www.treasurer.ca.gov/cpcfa/calcap/sb/fees.pdf

Completed CalCAP loan enrollment applications must be received at CalCAP within

15 business days of the “Date of First Disbursement” (Date of Loan) by email,

fax, or regular mail

[email protected]

(916) 657-4821

CPCFA CalCAP P.O. Box 942809 Sacramento, CA 94209-0001

B. CalCAP Loan Enrollment


http://www.treasurer.ca.gov/cpcfa/calcap/sb/certification.pdf


http://www.treasurer.ca.gov/cpcfa/calcap/forms/privacy.pdf

http://www.labormarketinfo.edd.ca.gov/Content.asp?pageid=1003


mailto:[email protected]


Before submitting a CalCAP Small Business Loan Enrollment Application, lenders should

ensure the following pertinent documentation is fully completed:

Required

CalCAP Loan Enrollment Application

CalCAP Lender Certification

Borrower Certification for Small Business Loan Enrollments

Proof of Borrower and Lender Fees

NAICS Print-Out

If Applicable

Commercial Property Appraisal

Severely Affected Community Information

CalCAP “Borrower’s Agreement to Pay Lender’s Fee”

Pursuant to the California Information Practices Act of 1977 (Civil

Code Section 1798.17), lenders are to provide the borrower with a

copy of the Borrower Privacy Notice disclosing borrower data collected

by lenders on behalf of CalCAP. Additionally, any alteration of

certifications need to be approved by CalCAP prior to use.

Copies of these documents must be submitted with the loan enrollment package, and the

original set should be maintained with the borrower’s loan file and made available to CalCAP

for review upon request.

All individuals who are party to the loan and/ or have signed the loan documents on behalf

of the business, including borrowers, co-borrowers, and guarantors, must also sign and

complete a Borrower Certification for Small Business Loan Enrollments form, which must be

submitted with the loan enrollment package.

Lenders must maintain documentation in their loan files demonstrating that the small

business borrower is licensed to operate in California. Satisfaction of this requirement is at

the sole discretion of CPCFA staff, and the documents should be made available to CPCFA

for review upon request. The following are examples of recommended documents, any one

of which may demonstrate eligibility:

Secretary of State Business Entity Filing

Fictitious Business Name Filing

Articles of Incorporation

Seller’s Permit

Business Tax Returns

Personal Tax Returns demonstrating self-employment income

Sales Tax Licenses

Business Tax Certificates

Annual Business Income Tax Statements


Instructions for Completing the CalCAP Loan Enrollment Application

This section provides instructions for lenders on how to complete the CalCAP Loan

Enrollment Application, which is the primary form needed for lenders to enroll a loan with

CalCAP.

A copy of the application can be found in Chapter VIII of this manual. However, lenders

should always check CalCAP’s website for the most current version of the application:


Form 1: CalCAP Small Business Loan Enrollment Application

Lender Information Section

Field: Information Needed:

Participating Lender Name of the financial institution.

Lender ID#

The financial institution’s assigned CalCAP Lender ID. This number was issued and provided on the signed copy of the lender’s “Financial Institution Application” agreement and “Welcome Letter” that accompanied it. (This number never changes.)

Loan Contact Name Name of lender representative CalCAP can contact with questions

about this enrollment.

Contact Phone Direct phone number with area code for Loan Contact named above.

Loan Contact Email Email of Loan Contact named above.



Borrower Information Section


Name Name of the primary borrower representing the business.

DBA Name of business (sole proprietor, partnership, corporation, etc.)

Address, City, County, Zip Physical address of the business.

Type of Business/Activities List the function of the business. “What does the business do?”

(e.g. retail sales, carpet cleaning, burger restaurant, etc.)

What year was the business incorporated or opened?

4-digit year the business either opened, was incorporated, or was taken over by the new owner.

If the business is a start-up, use current year.

Annual Revenues Last Fiscal Year

List the borrower’s annual business revenues for the last fiscal year - rounded to the nearest whole dollar amount.

If the business is a start-up, use the current income or $0.

Average Annual Revenue Last 3 Fiscal Years

List the borrower’s combined average annual business revenue for the last three years—rounded to the nearest whole dollar amount.

If the business is a start-up, use the current income or $0.

If the business was established within the last three years,

determine the average annual revenue for each year in which it did generate revenue.

Number of Employees

Number of all full-time or part-time employees of the business. This cannot exceed 500.

Refer to the FAQs in Chapter VI for instructions on how to report

the number of employees.


Number of Full Time Equivalents

Number of full time equivalent (FTE) employees of the business - rounded to the nearest whole number. This cannot exceed 500.

Refer to the “How to Calculate Number of Employees and Full

Time Equivalents (FTEs)” tool (http://www.treasurer.ca.gov/cpcfa/calcap/tools/employees.pdf) for instructions on how to report the number of FTEs.

Jobs created Number of jobs created for the business as a result of the loan.

If jobs are not created as a result of the loan, use “0”.

Jobs Retained Number of jobs retained for the business as a result of the loan.

If jobs are not retained as a result of the loan, use “0”.

Is business located in a

Severely Affected

Community? No Yes If Yes, select reason:

City Unincorporated County if City Not Listed

Other: __________

Indicate whether the business is in a Severely Affected Community (SAC) as reported by data from:

Employment Development Department (EDD):

http://www.labormarketinfo.edd.ca.gov/data/monthly-data- release.html

Follow the instructions below to determine whether the

business is located in a SAC and which reason is applicable. If the business is located in a Severely Affected Community, submit a print-out of the most recent EDD unemployment report with the CalCAP/ SB Loan Enrollment Application.

Severely Affected Communities

If a CalCAP loan enrollment is for a borrower located within a Severely Affected Community (SAC), it may qualify for an additional contribution. Borrowers with addresses in areas of high unemployment are located within a Severely Affected Community, as provided in the CalCAP Program Regulations. Currently, SAC contributions are offered in the CalCAP for Small Business Loan Loss Reserve program, the CalCAP Collateral Support Program, the CalCAP Americans with Disabilities Act Financing Program, and the CalCAP Seismic Safety Financing Program.

To determine whether a business is located in a Severely Affected Community, CalCAP uses data published by the Employment Development Department (EDD). A business is located in a Severely Affected Community if the Borrower’s address is in a city where the unemployment rate is 110% of the state unemployment average or more. If the business is located in an unincorporated area of a county or if the city is not listed, the unemployment rate for county where the business is located will be used to determine whether or not the business is eligible to receive an additional premium. Follow these steps to report a loan enrollment located in a Severely Affected Community:

1. Check the current California unemployment rate posted by reviewing EDD’s Monthly Data Release by navigating to http://www.labormarketinfo.edd.ca.gov/data/monthly-data-release.html and selecting California and Counties under Current Month Data:

http://www.treasurer.ca.gov/cpcfa/calcap/tools/employees.pdf

http://www.labormarketinfo.edd.ca.gov/data/monthly-data-release.html




The current California unemployment rate is located in the first row of the table.

Print this document to submit with your loan enrollment package.

City unemployment rates:

1. Lookup the current unemployment rate for the borrower’s city by navigating to http://www.labormarketinfo.edd.ca.gov/data/monthly-data-release.html and selecting Labor Force Data only for Cities and Census Designated Places:



And selecting the borrower’s county.


2. The selection will download the Monthly Labor Force Data for Cities and Census Designated Places in

an excel file with the data for the county. Print this document to submit with your loan enrollment

package.

3. If the city unemployment rate is 110% or more of current California statewide unemployment rate (not

seasonally adjusted) as of the date of loan (date of first disbursement), the business is located in a

Severely Affected Community.

Example: If the current California unemployment rate is 6.7%, any business located in a city with an

unemployment rate of 7.37% or higher is considered located within a Severely Affected Community. (6.7 x

1.1 = 7.37)

4. Check the “Yes” box next to Severely Affected Community on the Loan Enrollment Application.

5. Check the “City” box next to “If Yes, select reason.”

6. Include the Monthly Labor Force Data for Cities and Census Designated Places printout, with city

highlighted, when you submit the Loan Enrollment Application package to [email protected]

Unincorporated Areas:

If the Borrower’s address is located in an unincorporated area of the county, the county unemployment

rate will be used to determine Severely Affected Community eligibility. Documentation or explanation must

be submitted if the borrower’s address is in an unincorporated area. For example, documentation includes,

but is not limited to the following: maps with business location and maps that show the business address

is in an unincorporated area of the county, utility bills, or other documentation showing the business is

outside a municipality.



1. Lookup the current unemployment rate for the borrower’s County by navigating to

http://www.labormarketinfo.edd.ca.gov/data/monthly-data-release.html and selecting Labor Force

Data only for Cities and Census Designated Places:




2. The selection will download the Monthly Labor Force Data for Cities and Census Designated Places

in an excel file with the data for the county. Print this document to submit with your loan

enrollment package.

3. If the county unemployment rate is 110% or more of the current California statewide unemployment

rate (not seasonally adjusted) as of the date of loan (date of first disbursement) the business is

located in a Severely Affected Community.

Example: If the current California unemployment rate is 6.7% any business located in a County with an

unemployment rate of 7.37% or higher is considered located within a Severely Affected Community. (6.7 x

1.1 = 7.37)





County unemployment rates:

If the city of the Borrower’s address in not listed under the City and Census Designated Places link on the

EDD website, the county may be used to determine Severely Affected Community eligibility.

1. Lookup the current unemployment rate for the borrower’s County by navigating to

http://www.labormarketinfo.edd.ca.gov/data/monthly-data-release.html and selecting Labor Force

Data only for Cities and Census Designated Places:





2. The selection will download the Monthly Labor Force Data for Cities and Census Designated Places

in an excel file with the data for the county. Print this document to submit with your loan

enrollment package.


3. If the city of the Borrower’s address is not listed, use the county.





Will loan monies be used at above address? Yes No

If no, location where loan will be used: Address, City, County, Zip

Indicate whether the proceeds of the loan are being used to support

the business at a different business location than listed in the

“Business Address” field above.

If answered “no”, list the address of where the loan proceeds will be

used.

If answered “yes”, leave address, city, county, zip fields blank.

NAICS Code

Six digit number used by the North American Industry Classification

System (NAICS) to categorize business types. Please provide the

most current print-out of the applicable NAICS code for the

borrower’s business.





Census Tract #

11-digit number used to identify the specific location of a business to

provide more reporting consistency and uniformity.

https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx

https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx


Area of Property (sq. feet)

List the total area of the small business facility where the borrower

conducts business. Although the cost of altering or retrofitting

common areas and publicly or privately owned access points such

as sidewalks and parking lots is eligible, those areas should be

excluded from the square footage of the small business facility.

The borrower must have legal control of this property for a term at

least equal to the length of the enrolled loan.

Description of Eligible Costs

(Purpose of Loan)

Brief description of the use of loan proceeds (e.g. “increase service

counter heights” or “enlarge lavatories” or “increase disabled parking

striping”).

Is business minority owned? Yes No Decline to

Answer

The business is minority owned if at least 51% of the business is

owned by one or more minority individuals.

Is business woman owned?

Yes No Decline to

Answer

The business is woman owned if at least 51% of the business is

owned by one or more women.

Is business veteran owned?

Yes No Decline to

Answer

The business is veteran owned if at least 51% of the business is

owned by one or more veterans.


Loan Information Section


Is this loan enrolled in any other government guarantee program? Yes No

If “Yes”, name the program What percent of loan is

enrolled in other program? What percentage of loan is

being enrolled in CalCAP?

Qualified loans do not include any loan or portion thereof to the extent the same loan or portion thereof has been, is being, or will be enrolled in any other government program substantially similar to the Program.

This prohibition also applies to refinances of existing loans when

and to the extent that the prior debt was enrolled in another guaranty program.

Provide the name of the other program in which the loan is, has been, or will be enrolled.

For example, if $75,000 of a $100,000 is enrolled in another program,

then the percent enrolled in other program equals 75%. Select a percentage of the loan for which you would like to request

coverage from CalCAP.

If no amount is enrolled in another program, and you would like

to request CalCAP coverage on the entire loan, use 100%.

Lender Loan Number List the unique loan number associated with the borrower’s loan.

Type of Loan: Line of Credit Term Loan

Check one box only.

Total Loan Amount The total amount loaned to the borrower associated with the unique

loan number (regardless of amount enrolled in CalCAP).

Loan Amount Enrolled in CalCAP $

The portion of the loan the lender requests to enroll with CalCAP/ SB. This amount should be equal to or less than the amount in the “Total Loan Amount” field.

Use this amount to calculate applicable lender and borrower fees.

Date of First Disbursement (Date of Loan)

Date of loan (if term loan) or date of first disbursement (if line of credit).

This date triggers the clock for the 15-day deadline to

submit an enrollment application to CalCAP.

If the enrollment is a pre-qualification request, leave this

field blank.


Maturity Date

The date (MM/DD/YYYY) the enrolled loan matures. CalCAP will insure enrollment for a maximum of 5 years (60 months), regardless of maturity date.

If the enrollment is a pre-qualification request, leave this field

blank.

Interest Rate

Fixed Variable

Annual Percentage Rate (APR) for the enrolled loan.

Indicate whether interest rate remains the same (fixed) or changes (variable) over the life of the loan.

If answered “variable”, provide the starting rate and the index

the variable rate is tied to.

Is the loan secured?

Yes No

If collateral is used to secure the loan, answer “yes”—otherwise, answer “no”.

Is this loan a restructure of a prior CalCAP Loan?

Yes No

If Yes, provide the CalCAP Loan #

Remaining balance on loan

being restructured Amount of increase requested

Answer “yes” if this loan represents a restructure of an existing CalCAP enrolled loan—otherwise, answer “no”.

If answered “yes”, list the unique CalCAP Loan Number previously assigned to this loan by CalCAP.

Provide the residual balance on the former loan prior to the restructure.

List the portion of the loan that is being advanced above the amount already indicated in the “remaining balance” field.

The “amount of increase” serves as the basis for calculating the

new borrower and lender fees.

Borrower Fee

Provide the dollar amount and percentage based on the enrolled amount of the loan.

Percentage rate must be between 2% and 3.5%.

Lender Fee

Lender and borrower fees must be equal. Submit the “CalCAP Borrower’s Agreement to Pay Lender’s Fee” if borrower pays lender fee.


Is an Independent Contributor being used to pay the fees?

Yes No

If yes, Name of Contributor Program

An independent contributor can pay all or a portion of the borrower, lender fees, and CalCAP contribution, or any combination thereof, depending on the program.

If answered “yes”, provide the name of the independent contributor program (e.g. CalRecycle).

CalCAP will calculate the dollar amount and percentage to be

contributed.

If answered “no”, leave field blank.



Form 2: CalCAP Small Business Lender Certification

Signature and Certification Section


Borrower Name Name of borrower.

Lender Loan Number List the unique loan number associated with the borrower’s loan.

If the enrollment is a pre-qualification request, leave field blank.

Authorized Lender Signature To be signed by the lender-designated authorized signer.

Title Title of the lender-designated authorized signer.

Date Date the enrollment was signed.

Printed Name of Authorized Signer

Full printed name of the lender-designated authorized signer.


Summary CalCAP Loan Enrollment Flow Chart

Documents

SB III. Enrolling a Loan - California State Treasurer · 2019-08-21 · CalCAP Small Business Program Lender Manual III-1 III. Enrolling a Loan A. Overview Lenders must submit to